Retail auto sales dive 87 percent in May amid lockdown

June 13, 2020 11:32 am

The sales of retail passenger vehicles have plunged 87 percent in May from a year earlier to 30,749 units. Though the dealerships gradually were resumed but the fear of falling prey to the clutches of pandemic spread of COVID-19, has kept the customers away from any dealings.

Even the sales of retail truck and busses witnessed a plumed nearly to 97 percent, with a sale of barely 2,711 vehicles, as per the data issued by the Federation of Automobile Dealers Association (FADA). Moreover, the sales of motorcycles and scooters have also dropped by 89 percent with 159,039 units during the month. To be more precise, the overall retails sales of automobile has dropped to 89 percent with 202,697 units.

Although the government has initiated a number of measures and has eased few lockdown norms and allowed operations at showrooms and service centres from May, but still the pandemic is affecting the industrial growth.

Out of 26,500 dealership outlets, about 60 percent of the showrooms and 80 percent of workshops were operational across the country at the end of May, said Ashish Harsharaj Kale, president, FADA.
“With an assumption of no further lockdown and continued reopening measures, there will be a substantial pickup in retail sales of automobiles in June in terms of May, but the overall outlook continues to be grimwith projected sales to witness a decline of more than 25 percent compared to last year,” Kaleadded.

The Society of Indian Automobile Manufacturers (SIAM) has forecast a 35 percent fall in vehicle wholesales this fiscal, following an 18 percent decline in 2019.“This leaves the dealership community affected by the toughest years ever as volumes are estimated to halve in a span of 20 months,” Kale said.
Retail sales of two-wheelers, though, are forecast to recover in the coming months on expectations of a quicker revival in demand in the rural and semi-urban markets due to a good summer crop, benefits of recently announced government schemes and expectations of a good monsoon.
In a report last month,Crisil rating agency has predicted commercial vehicle sales to fall 26-28 percent this fiscal year due to the impact on economic activity from the pandemic and companies implementing steps to control cost. Moreover, Crisil has forecast the Indian economy to contract 5 percent in fiscal 2021.